I’m not sure whose side to be on in this fight. There seems to be conflicting issues involved.
On the one hand it would seem that precedent was on the bondholders side given that historically bondholders are at the top of the list when paying creditors. However, the government just pumped a sizable amount of cash into Chrysler. So if the bondholders were to be benefactors/recipients of tax payer largess then that would muddy the waters a bit for me.
